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There's no question about it: Sony had its work cut out when it came time to improve the next generation of its e-readers. Amazon's Kindle isn't only the best selling electronic reading device out there, but its new $139 WiFi version is the fastest-selling yet. And then there's the Barnes & Noble's Nook, which is an equally capable competitor, especially with recent firmware updates. Oh, and don't forget about the $140 Kobo. Yep, Sony had some serious work to do and its cheapest option - the $179.99 Pocket Edition -- does differentiate in some striking ways. The aluminum reader has been upgraded with a new 5-inch E Ink Pearl display and now has an extremely responsive touchscreen for navigating through books / menus. The updates certainly have put Sony back into the final four, but there's a few lacking features that just keep it from going all the way. You'll want to hit the break to find out just what we're talking about in our full review of this little guy.